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Worldwide Exchange

News/Business. Ross Westgate, Kelly Evans. Ross Westgate and Kelly Evans consider the business stories that have global significance. New.

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02:00:00

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U.s. 36, Us 34, Europe 24, China 14, Myanmar 13, Israel 13, Ireland 8, S&p 6, Obama 6, Greece 6, Cairo 5, United States 4, Imf 4, Citi 4, Louisa 4, Jamie Dimon 3, Warren Buffett 3, Hsbc 3, Eu 3, Egypt 3,
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  CNBC    Worldwide Exchange    News/Business. Ross Westgate, Kelly Evans. Ross Westgate and  
   Kelly Evans consider the business stories that have global...  

    November 19, 2012
    4:00 - 6:00am EST  

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. welcome. you're watching "worldwide exchange." i'm louisa bojesen. these are our headlines from around the world. socks bounce, equity markets in europe beginning the week in green, rallying more than 1% in some places on hopes of a resolution on the fiscal cliff. barack obama praises myanmar's shift to democracy in a first ever trip by a serving u.s. president to the country. but he cautions that his trip should not be seen as an endorsement of the country's sgoechlt. and oil futures hitting a two week high as international pressure mounts for a cease-fire in gaza. u.n. secretary general ban ki-moon is heading to cairo for emergency negotiations.
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good morning, welcome to the program packed full of fantastic guests to give you you updates and analysis on where we are in trade. if europe, higher by 0.8%. coming off the 3 1/2 month low that we saw in the close on friday, helped along by optimism on the negotiations to avoid a fiscal cliff state side. we saw quite a rally in the u.s. on friday's close and that is feeding through to europe here this morning. ftse 100 higher by 09%, xetra dax by more than 1% and ibex 35 more than half a percentage point. the bond markets, the question is whether or not we'll see a lid on on bond prices on treasuries especially if we manage to overt a fiscal cliff scenario, if we see productive talks continuing.
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right now we're seeing the yield on on the ten year bund just a little bit higher. we're seeing a bit of buying taking place in the spanish and italian debt market on the ten year and a little bit of selling on on the gilt. the currency markets just to give you a full update on where we are, we have a relatively flat on slightly higher euro-dollar. so we're in the lower end of that range still that we've been trading in for quite some time right now. so that's what we're looking at. let's check in on the markets in asia. >> most asian markets finished in the green. optimism that the u.s. lawmakers will clinch a deal on the looming fiscal cliff.nikkei 225 closed at a two month high on hopes that the country's key opposition party will return to you power. more on that from our nikkei reporter coming up. exporter stocks gapded on the back of a weak yen.
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currency hits a seven month low. elsewhere lack of policy direction weighed on chinese stocks. the shanghai composite touched its lowest in-are a day level at more than three years at one point before rebounding to close a touch higher in late trade. brokerages outperformed helped by supported policies. watch out for china's next key data point on thursday, that's when we'll get the hsbc flash pmi for november. shares in hong kong faired a bit better. energy plays led the rally on ohio oil prices. elsewhere south korean shares snapped a between day losing streak helped by technology stocks and also ship builders. in us a take i can't, commodity plays lent support to the asx 200. talks of a leverage buyout plan.
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sensex now trading louisa, back to you. the spanish bad loans according to reuters, now at the 10.7% during the month of september versus 10.5% seen in august. so according to the bank of spain, we're seeing that figure just creeping up just by a tad. now, in the u.s., a slightly grimmer picture. major u.s. indices have fallen by 5% since the election day. this month already stacking up to be the worst november for the dow and the s&p 500, ninth worst november since 1973. so it's been pretty dismal trade if you're an equity holder. hi, charles. we talk about this and we're looking at a bounce in europe
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this morning. do we think the grimness will continue? >> i think the equity markets, they couldn't really believe bond the election until it was out of the way. you had clearly different scenarios fending on who won. having got that we were left with very much the same political structure that we had going into it. so you had to reprice in some tail risk that the various houses in the u.s. congress would in the get along. so far the noises we're hearing sounds like they're all playing nicely in the sound pit. but it's worth keeping in find even if they do get a deal, it's certainly a fairly economic headwind coming into next your because there will be some kind of fiscal drag. >> if they do the get a deal or if they get a bad deal, it will be a huge impact potential loi gdp. >> absolutely. the if you will scale according to 4.5%, a big hit when the
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economy only growing at 2%, 2.5% at best. so you'll be talking about deliberately 24r0eithrowing the into a fairly big recession. i'm not sure it's over yet, but do i think that a we will chief some sort of resolution. as i say, we're looking at somewhere between 1.5% and 2% fiscal hit next year. >> and we still have our own issues did go on in europe. is there a chance we end up positioning ourselves back into the equity markets? >> to be honest, i would view the sort of risk off move as something of an opportunity provided you brief that you are going to get this resolution. because if that's the case, i think there probably is quite a lot of pents up investment demand. a fair body of evidence because
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of the fiscal cliff and uncertainty sur are undering the election, you've seen a fairly substantial delay. and postponement of investment plans. now, clearly you you could see the positive spring back effect in 2013 which may compensate for on some of the drag. but broadly speaking, you have seen a fairly big hit corporate profits. but that's all relating to this uncertainty. so i had 00 be more risk on in on 2013 if we did get the kind of deal we think we could. >> nymex crude futures have hit a two week high on escalating tensions in the as international pressure for a cease-fire intensifies, israel's foreign minister says he sought a long term arrangement arguing any discussion must begin with gaza agreeing to stop all fire into israel. are we going to see more of a
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premium put into global risk trades now, as well? >> the oil price is the real issue here and that is the factor that could make or break global growth. we've seen a fairly reasonable decline over the past you few months in response to the slower global growth story. if you start increasing the oil price because of tensions in the middle east, and the moves we've seen so far are not substantial, but if we start getting towards $95, $100 a barrel, that starts to put even more economic headwind in you like in the way of the world and that would be a very bad thing. i think it's likely to remain a relatively localized conflict. the risk is if it broadens out further, we still have the issue of iran and what would happen there. something happening there could see the oil price spike to 140,
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150. >> i hear what you're saying it potentially remaining ale loized issue in israel, but at the same time, i was speaking to an egyptian acquaintance yesterday and they said things are looking bad in egypt and you have to wonder whether it is going to spill over and hope broader implications for the country -- >> and that is the big risk. i'm not a gae owe political expert on places like egypt, but the whole nature of the region 45s chan has changed to some extent. we're dealing with an additional level of uncertainty. that means that whereas previously you would have had someone like egypt as a broke he, they may be more one-sided now and have opinions of their own. we can remain hopeful, but there is that risk. >> charles, thank you very much for joining us here.
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head of market strategy at lloyds bank wholesale banking and markets. on today's show, we'll have more on on the escalating tensions in the middle east. we'll be live in tel aviv in right around 15 minutes time for a view from the ground. switzerland is where xtrata will have a slowdown tomorrow, we'll find out why bonuses become a key point of contention. and we'll be live in athens to find out if we can finally expect resolution on the country's next tranche of aid this week. and we track a bond making an aggressive bet on recovery. that happens at 11:20 cet. president obama made a his tore rig stop in myanmar. the six hour visit marks the first for a serving u.s.
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commander in chief. obama met with their president and opposition leader now lawmaker. obama made it clear his visit was not an endorsement of the dictatorship but an acknowledgement of the progress made. >> i shared our belief that the process of reform that he has approached is one that will move this country forward, the steps that he's already taken for democratization, elections, release of prisoner of conscious, a commitment to work with us on on human rights, all can unleash a potential of a beautiful thing. and i shared with him the fact
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that i recognized that this is just the first steps on what will be a long journey. >> and we'll have more analysis on obama's three day southeast asia trip with ambassador to singapore in about 30 minutes time or so. so stay tuned for that. the czech government has announced that it eases plans amid growing krit schl of its austerity drive. additional money would be used to stimulate the economy which is in its fifth consecutive month of contraction. jeff is in the capital of the check czech republic of crowd. where are they?
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>> this is quite challenging. the debt fundamentals are actually not the that bad and this is an economy where the government spend is a little over the 3% that the eu wants to see of the gdp. but they want to bring that done below the 3% number which is why the government has xwn through a no confidence vote which they won in recent weeks and has imposed more austerity because they are on this convergence trajectory. so to some extent, some of the slowdown in the economy is self-inflicted, some of it is as a result of the broader slow dunn in the european economies as a whole. one of the things they don't suffer from here is liquidity in the financial system and we caught up with the central bank governor and talked to him about that, and about how they may go
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about perhaps stimulating through lowering value of the currency and he said that is something they're working on at the moment because they're concerned about the inflation target target. we also went on to talk about the economic outlook for the broader eurozone economies that the czech republic exports into and he had a very interesting answer. let's listen into that because he thinks the growth dynamics will improve in 2014. >> i'm optimistic that 2014 will look quite better especially because there are countries that are essentially finished with consolidation, so they do not need to cut anymore, even with this sort of subdued demand in europe and this tough situation.
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and that will provide some help. >> so that was the central bank governor. but let's talk more about what the government here is doing to try and get this economy out of recession. the deputy finance minister is with us. we'ved a some suggestion that policy will be less austere going into next year. does that mean you're more comfortable as a government that you can hit this 3% imposed ceiling from the eu in 2013 and 2014? >> yeah, after voting in parliament a few days ago, we are a little bit more reluctant.
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we would like to fulfill, of course, the request to be under 3%. next year we for sure should be with our deficit under 3% of gdp, but then we would like to be focused for growth, for development of economy as a reaction for necessary changes in competitiveness and. >> in a way some of the slowdown is self imposed because you are moving towards this convergence target. the debt fundamentals here are not that challenging compared to much of peripheral europe. do you think the government should be forcing austerity on the czech people at a time when it might be better pursuing
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pro-growth strategies? >> pro-growth strategies is something or are something we could develop if we are fulfilli fulfilling the european target. so we will see development of economy and reaction of people and if we are able, of course we would like to see development and pro growth actions. >> some people are asking themselves why are the czechs doing this to themselves when they have for intention of joining the eurozone with that the next three to four years probab probably. they could afford not to do this instead of signing themselves up to a system that appears to be broken. >> it's not a question of entering the eurozone, it's a
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question of the position of the whole economy. we have a crisis of fiscal policies. it's not a real economic crisis. so that's why a priority is really to fulfill all our midterm strategy as we have it on paper and that's a basis for stability of our economy. >> so good hoist keeping as far as you're concerned. but let me then ask you, are you still convinced that a convergent strategy at this time remains the right approach for the check government? why abrogate your economy to decision making from brussels? >> that's really difficult. we will see what brussels development will be in near future and how it will be
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affecting the czech economy. it's not a simple answer for this question. so as i have said, at this moment, we want to fulfill our duties, our criteria, and we hope of department it of economy. >> how soon will you join the eurozone? >> these receipt itticly, we will be ready in year 2014. so we can start to think about what we should calculate because through entering of eurozone, it's a little bit too much expensive than few year ago. so not easy decision and we should ask parliament to agree with. theoretically, we are ready. >> thank you so much for coming to see us here, thomas. deputy finance minister. let me send it back to you, louisa. >> as part of this trip that
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you're on, where are you heading next? >> well, we're going to wrap up our bags in prague and then warsaw. so we should be in poland mid week and then after that, we're intending to move on to croatia where i think things will get warmer weather-wise. so i'm quite looking forward to that. i have packed my sunglasses and my sun cream, although i suspect even in november, it's not quite warm enough to get a tan. >> you never know. you might be lucky. geoff, thank you very much. we'll see geoff on wednesday as he mentioned. now, u.n. general secretary ban ki-moon has called for a cease-fire as the violence in gaza and israel continues. this comes after the deadliest one day attacks on sunday with 11 palestinian civilians killed including four children. eu foreign ministers are due to
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meet in brussels later. tensions in the middle east are expected to top the agenda. joining us live from tel aviv is nbc news reporter stephanie g k gosk. thanks for being with us. has any progress been made so far in brokering a peace deal? >> reporter: we know those talks are ongoing. we haven't heard publicly of any log. we know they're discussing a couple things on the palestinian side. they want the block and i had stopped and stop being targeted by israeli forces. and so this side, they want the rockets to stop from dropping. a lot of those rockets have been stopped, interceptioned by the missile defense system they call the iron dome here which has been very successful. netanyahu said the rockets have to stop falling and if they do not, the forces will expand
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their operation. code for ground invasion. something president obama said that he did not want to happen that will increase civilian casualties and something that leaders are trying to stop. >> stephanie, thank you very much. stephanie gosk joining us live via nbc news from tel aviv. bp has reportedly planning a multibillion pound share buy back. all the details on that in just a moment. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. can help make you a better investor.
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welcome back. bp is reportedly planning a share buy back of almost 4 million pounds. the oil giant is planning move to help support its share price and fend off any unwanted takeover attempts. meanwhile a separate report in the uk's telegraph newspaper warns that a bp will remain caught up in litigation over the oil spill until 2015. last week bp reached an agreement with u.s. authorities over the spill saying it would pay $4.5 billion related to the disaster.
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bp shares this morning trading slightly higher up by 2.5% for the last 12 months off by approximately 5%. repsol is confident they will be compensated for the takeover. the chair pan said he was, quote, hopeful that a deal could be reached with the government which seized ypf back in april. he said they would seek arbitration through the world bank. his remarks follow comments by spain's foreign minister suggesting a solution could be reached soon. >> and ecarolyn roth has more o the xstrata story. >> it's a crucial week for the deal that has been in the making over the last nine months. there have been so many twists and turns to that story, specifically because of the
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opposition share second biggest shareholder about revaluation and retention package. tomorrow shareholders will come to switzerland to vote on the deal. it's going to be quite a trachky one because there are three votes attached to it, but the baseline scenario is that the can deal will be voted through. this is the $68 billion deal. so one of the biggest deals this year. but the more contentious issue, the retention package, will probably be voted down and that's because xstrata's secon biggest shareholder will abstain from voting. so it looks like this is not going to go through. there is another hurdle, though, this week, the eu competition commission voting on that deal, as well. they're concerned about the domination in the zinc market.
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and it doesn't mean the deal will actually get to going through with final approval because the chinese competition authorities still have to give their verdict and there's no timing and no predict ability on that. >> we've seen so many deals fall through. i only trust it once they've signed on the dotted lines an all terms are agreed. until then, anything can happen. >> only when the ink is dry. >> exactly. carolyn, thank you. tweet us @cnbcwex or @louisabojesen. it would be great to hear from you this morning. still to come here on the show, president obama makes a controversial stopover in myanmar as part of his tour across southeast asia. we will bring you all the details in just a couple of moments.
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welcome back. stocks bounce, equity markets in europe begin the week in the green rallying horn 1% on some places of hopes on a resolution on the fiscal cliff. barack obama praises myanmar's shift to democracy in a first ever trip by a serving u.s. president to the country, but he cautions that his trip should not be seen as an endorsement of the country's government. and oil futures hit a two week high as international pressure
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mounts for a cease-fire in gaza. ban ki-moon is heading to cairo for emergency negotiations. if you're just joining us, welcome, everybody. yes, we are seeing a bit of a bounce on european equity markets this morningle following on from the selling that we saw especially late end of last week. there is hope that we could be looking at some type of an agreement taking place and he that we could overt a fiscal cliff. again, this is just talk at the moment. until the dotted line is signed, we're still up for anything at this stage. there's a little bit of a risk on type environment at the moment. and the ten year bund yield moving a little higher. the same goes for spain, built oig and yield, as well.
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we were looking at the euro just bouncing a little bit against the dollar. you're heading into this morning's session, we're holding on to those gains, 127 and a bit. the dollar yen coming off by just a tad. president obama meeting with myanmar's president and opposition leader. obama saying his six hour stopover should be seen as a sign of support for myanmar's attempts at democratic reforms rather than endorsement of the country's government. meanwhile his three day trip is also aimed at reinforcing america's ties with the region. analysts say it's something china is watching very closely.
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deidre has more. >> the obama's administration to choose southeast asia as the president's first foreign trip since winning re-election was greeted by some with surprise. after all, there are far bigger economies in asia that warrant his attention. the strategic importance of southeast asia in the region is in full focus with u.s. president obama's visit to myanmar and hk's visit out here to singapore. >> it's part of a region where progress has been slowed by insecurity and mistrust. but it doesn't have to be that way. as burma opens up and establishes new ties, it could become a commercial hub linking markets in india and bangladesh with southeast asia. >> analysts say china will be paying close attention to this visit highlighting the delicate
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struggle for power being played out in this region. >> all we would have to do is add vietnam and it would be a very clear signal about china improving relations with allies. certainly it's going to be some that china will be paying close attention to. >> pepsi, coca-cola and ge have already begun to invest p about. >> ge is very excited about myanmar. we've been following it for a couple of years. big population. 60 million. large land mass. a lot of natural resources. so it was great to see the country begin to open up. >> what did you say to some of the critics, do you say myanmar hasn't opened up enough yet to encourage the kind of investment that ge is putting in to the country? >> i think problem and secretary of state clinton's visit shows the support from around the world.
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for continuing on the reform path. so i think they'll make it. it's probably not going to be as fast as everybody would like to see. but i think they understand that in a democracy if you're going to win elections, you need to have inclusive growth. >> obama's visit to the once pariah state may also send a message to other countries in the region. and some say it's a bold move right in china's backyard. deidre wong morris, cnbc singapore. joining us you now is ceo of export now. frank is also former u. under secretary of commerce. frank, welcome. what do you think is behind president obama's trip? >> i think your correspondent had it exactly right that the united states is just looking for greater connectivity and it's particularly relevant at a time when burma is starting to open up that the u.s. get fully
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engaged in the economy with the political leadership of that country. >> you can always debate the pace, but no doubt reform is taking place when he moves from house arrest to being an elected city member of parliament, that's not just rhetoric, but those are concrete steps that i think the world should respect and i think it is a signal to all of the democratic nations, the advance nations that it's a good time to start engages that country. >> how do you think china is going about this visit, as well, and what will it mean for future relations? >> china has a role to play and
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burma will be the economic car because trade and investment. but i think many burmese are wary, also, of the asymmetry in size between the two countries and they welcome united states, india, other countries' voechlt to help give it a little more breathing room. >> trade relations between the u.s. and asia now, are we going to see significant progress here especially after the u.s. elections now are over and done with? >> well, united states is fully committed to the dratranspacifi partnership and more agencies are likely to come on board. but being a multilateral initiative, it could take several years. mean while normal commercial interaction continues to grow just on the back of the growth
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we're seeing in the asian economy. >> stay with us for the moment because trade ministers are scheduled to meet tomorrow to discuss launching a try lateral trade agreement. here are details from seoul. >> that's right, trade ministers will be declaring the launch of talks instead of the heads of state given the ongoing territorial disputes between the countries. china, japan and south korea account for 20% of the global gdp and 17.5% of all global trade. so we're talking about a very ambitious path likely to be the biggest if it comes into effect. for korea alone, the pact is expected to bring about 1.5% of gdp growth ten years after the
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implementation. and many experts say it will likely ease geopolitical tensions and also address awkward issues involving north korea, as well. la would heeould louisa, back to you you. >> we have another trade agreement being laid out. what are your thoughts on that? >> my thoughts in the early stages, i think we have to view it more as a symbolic step or political statement. but i think it's welcome none the place. japan, chinese ties have been largely colored by territorial disputes. so it's useful to get the discussions back on a positive footing and for even to remind cot statistic inside cities that they have a lot to contribute and improved relations helps everybody in northeast asia.
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>> how worried are you about trade in general if we're continuing to see europe town a tough economic path or a fiscal cliff cliff scenario in the u.s.? when the economy is soft, sentiment creeps in. so it requires political leadership to keep trade moving forward. i don't think i've seen a lot of retro gregs in europe, but europe is so involved in its own economic problems that i don't think we're seeing a lot of trade initiatives out of or rop in the near term either. >> frank, good seeing you here this morning. thank you very much. in japan, the latest opinion polls show ldp has a commanding lead. let's sgoe to the nikkei for a break down of the numbers.
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>> according to our own polls, 25% of potential voters rnk building electing for the ldp. the ruling dpj trails with only 16%. 37% named the president for next prime minister and 35% chose the current prime minister. there is a push for the boj to do more. but tax chief said that ldp's ideas such as unlimit willed credit easing would create economic bubbles instead of sustainable growth. and he said he is, quote, absolutely opposed to the idea of revising boj law or introducing inflation targeting. these are policies favored. while b ono j watchers say it w
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like will to tip easing, but the bank will asset effect of previous policies. back to you. >> tomorrow's euro greek meeting is likely to be a tense favor. the imf looks set to stick to its guns over the 2020 deficit deadline. christina lagarde says any financing program needs to be rooted in reality and not in wishful thinking. julia chatterley joins us live from athens. julia, tomorrow is going to be very important once again potentially for greece. are we any closer, though, to potentially reaching some type of an agreement on this two year extension? >> we seem to be getting mixed messages. they don't anticipate a write down until the circumstances are
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extreme, but the finance minister has said there a solution found. i think ultimately the belief here is that the cash will come through, but the key question is will actually anything have changed. i had a conversation with my taxi driver on the way from the airport last night and he said to me this is the first time actually where greece seems to have done the work that they need to do and the arguments, the wrangling is on the you're pea anxiouss and imf side. but his big question is what comes next. the government barely able to pass the new austerity measures, a total between 7% and 8% of gdp. can they start tos pass those measures through. there's already been talk of a cabinet reshuffle. so it's about the politics, too. and when you have brokers
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suggesting an ultimate write down of 80 billion euros is needed, if there is a two year stop gap, what will that do for the confidence it here in greece. i don't think it's enough. >> julia, there's also the issue of whether or not we're ultimately going to see haircuts having to be taken. from what you're hearing, what are people saying, are they realizing that this might have to be part of the solution? >> to be honest, i don't think there's much expectation actually that we get the talk or an announcement of a haircut tomorrow. they'll try and find other things like a reduction of the interest rate perhaps passing over some of the profits on the greek government bond holding back to greece. i think perhaps a haircut is something that many analysts believe will happen down the road, but i'm not sure we see it tomorrow unfortunately. >> julia, thank you very much. now, the outlook for jobs in the investment banking sector is set
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to worsen, a report suggesting that a further 40,000 positions are set to go as part of industry restructuring. many of the world's leading investment banks are likely to reduce global presence to concentrate on regional markets. shadow banking is on the rise. this system more than doubled in the last five years to over $67 trillion. these institutions were widely thought to have aggravated the financial cry says back in '08. hsbc has confirmed that it's in talks to sell its $9.3 billion stake in chinese insurer, but it's caution that had a deal may not be forthcoming. analysts have warned that the bank could have difficulty finding a single buyer for such a large holding.
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shares clipped to a two month low to close right around 2% lower. this week we discuss on trade links whether social responsibility can help businesses agree abroad. stay tuned. having you ship my gifts couldn't be easier. well, having a ton of locations doesn't hurt. and my daughter loves the santa. oh, ah sir. that is a customer. let's not tell mom. [ male announcer ] break from the holiday stress. fedex office.
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welcome back. social responsibility initiatives can help a business grow overseas according to unilever's chief marketing officer. ross spoke to him earlier and started by asking him how can can hes maximize profit while at the same time be a benefit to local communities. >> we're focused on developing emerging markets. and we both produce there for those markets and also export to other markets, as well. we did from a general market perspective, we talk about draeting consumer demand led growth, but that's no longer enough. we need to think about
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sustainable not just in terms of economics, but also environmental and social, as well. so my perspective is, yes, they come together because if you want sustainable growth, sustainable economic growth, you need to have that in a healthy society, as well. >> you you do something have a ordinary at un any level. you actually scrapped your social security. why? >> our strategy is focused on doubling the size of our business while reducing our environmental footprint and increasing social impact. i did not want a csr department producing a glossy couple of pages. >> so what does that mean you do with your brands then? does not mean your brands have to imbody some responsibility while also selling them to the
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consumer? >> we recently had global hand washing day. one of the biggest impacts on disease that you can have is washing your hands. if we're the largest soap on business in the world, if we encourage people to wash their hands more, they'll get healthier and also use more soap. so we can make people have healthier lives -- >> use more of your soap. >> and as weert large're the lap business. and we have a toilet cleaner and word toilet day is on its way and we do an awful lot around sanitation. so what we do is we very much put the brands and productses that we're producing to the consumers, but how does it possibly impact -- >> you're linking them to
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causes. >> absolutely. and if you go back to the very start of unilever, he started with the thought and he was inspired by looking at the squalor of the slums of europe. and he said i build a big business if i give people products with real benefits. >> are you at a stage where you're trying to do this without an impact on profits or does this evolve where actually if you do this, you increase your profits because the consumer associates some do good factor by what you do? people often say what is the case sustainability. i'd love to see the case for the alternative. we've been around for more than 100 years. we want to be around for another
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100 years. we believe if you design sustainability in in the broader sense, environmental, social, it can be part of the brand, part of the politics. in waste, planet pays for waste twice. once when you produce the object and then secondly when you dispose of it. if you can take the waste sought, it's more efficient for the planet and also the p & l. >> and the trade link series runs every monday at 10:50 cet. for more, head on to tradelinks.cnbc.com. ally back about a is reportedly in talks to buy weibo.
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ally ba hlei baba is looking to% to 20% stake. both parties have not commented on the reports so far. facebook and yahoo! reportedly in talks about a possible search partnership. yahoo!'s ceo and facebook ceo who both previously worked for google have met to discuss closer ties between the companies. reports say any deal could push microsoft which currently powers yahoo! search technology out of the picture. figs book book and yahoo! shares both seeing a lot of interest in trade these days, as well. so keep an eye on the open. those are the german listings you're looking at right now. ho hostes sch hostess announced friday that
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they were closing after failing to get wage and benefit cuts from thousands of striking bakery workers. the move means most h. most of its 18,000 proviemployees will losing their jobs. several third parties have expressed interests in buying assets, which mean twinkies could find a second lease on life under new management. someone else looking at snapping up assets in general is the u.s. wrapper snoop dogg. he's setting his sights on an unusual overseas investment, scott land's celtic soccer team. the avid sports fan told the scottish daily record he first noticed the fwlub after they defeated barcelona in the champions league earlier this month. of course i watched all of it. snoop dogg doesn't envision himself running the team, but he'd like to invest enough to have a seat on the board and to have his voice heard or to bring a bit of snoop to thing. i thought he changed his name to
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snoop lion. anyway, if you want to join the conversation, feel free to contact us here on "worldwide exchange." worldwide@cnbc.com, @cnbcwex, r or @louisabojesen. still to come here on on the show, global markets are moving higher on hopes for a deal to avoid the dreaded fiscal cliff. we'll bring you the latest out of the u.s. [ female announcer ] want to spend less and retire with more?
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. welcome back. you're still watching "worldwide exchange." these are your headlines from around the world. stocks bouncing, beginning the week in the green.
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hopes of a resolution on the fiscal cliff. barack obama praises myanmar's shift to democracy in a first ever trip by a serving u.s. president to the country. he cautions his trip should not be seen as endorse him ment of government. and ban ki-moon is heading to cairo for emergency negotiations. if you're just tuning in, thank you very much for joinings you. also a pleasure to have you with us. what we're looking at today in market trade, a bounce in europe. dow set to hope higher in the
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60, 70 points. nasdaq by approximately 13 points. and the s&p approximately 8. still a couple hours before the u.s. markets open, but we saw a strong close on friday and that has fed into the european markets right here. trade higher by approximately a half percentage point or so. equity markets, ftse 100 higher by just shy of 1%. xetra dax up by 1.3%. same goes for the french market and the ibex 35 adding approximately half a percent or so to trade, as well. the bond markets, there's a lot of speculation about whether we're moving towards a negotiation on the deal to avoid a fiscal cliff. u.s. lawmakers said over the weekend that negotiations are looking quite productive and the question is whether that will keep a lid on bond prices state
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side. what we're seeing in europe, a bit of selling in the bund. spain spain, buying a bit of ten year paper. italy, we still continue to see a bit of buying and the ten year in the uk yielding right now just above 1.7%. the forex markets relatively stable trade seen this morning. we're still just a little bit higher in euro-dollar right now. still around that 1.27 mark. flat dollar-yen positioning. would you have seen earlier the yen weakness has helped to give the nikkei a bit of a bounce. aussie dollar relatively flat. also sterling against the greenback. # let's check in on our markets in asia. give us a round up of the asia markets can. >> most finished in the green.
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the big winner is japan. the nikkei 225 closed at a two month high on hopes that the country's key opposition party will win next month's election. the yen hit a seven month low versus the dollar. elsewhere lack of policy catalyst weighed on chinese stocks. the shanghai composite testif the lowest intra day level before rebounding to close a touch higher. property stocks were the big losers, but brokerage helped by supportive policies. watch out for the key data point on thursday. the hsbc flash pmi for november before shares in hong kong faired a bit better. energy plays led the rally on higher oil prices, but china consumer plays down beat results. south korea ended higher by
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about 1%. in australia, commodity plays shined. bill la bond shares jumped over 10%. sensex closed hire by 0.3%. louisa, back to you. >> thank you very much. so a full round up heading further into our session of trade today in europe. in the the u.s., though, it's been a grimmer picture. major u.s. indices have fallen by 5% since election day. this month already stacking up to be the ninth worst november for the dow and s&p 500 since 1973. we're joined now by michael croft crofton. we're looking implied open being slightly positive. we have bernanke speaking this week, housing data out, and then thanksgiving which means it will probably tail off into a bit of a quiet end to the week. how do you think, though, that u.s. investors particularly are
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focused on on equity market trade, are they waiting for the fiscal cliff deliberations or positioning now? >> i think they're waiting for the fiscal cliff deliberations. i don't think we go over the fiscal cliff, but i don't think we're close to a solution. in 40 days, we won't get to a solution that will take away 25 years of prove la gat spending. so they're waiting and watching what's going on in the middle east. if there's a ground war that could wreak havoc in our markets. or rop is muddling along. it's a big trading partner for us. we'll have a bit of difficulty. and we're watching closely the transition of power in china. >> president obama continues to press his case for avoiding the
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fiscal cliff in january. the white house says he spoke with several more ceos this weekend including jamie dimon, warren buffett and tim cook. the president met with top u.s. lawmakers to begin wunl h. budget talk. both sides are saying they're confident they can reach a deficit cutting deal. >> every member of our caucus appreciates that this fiscal cli sis is ever closer. and that's doctor we need to negotiate through the process and make sure we come up with a real solution that will actually solve the problem. >> what i hear is a perceptible change of rhetoric and an invitation to say what we can do for this country. >> senator durbin says republicans appear more willing
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to try to reach a did deal this tile around compared to previous budget talks. do you think that's the case, michael? >> yes, i do. i think the republicans are caught between a rock and a hard place. the people of the united states have given obama a mandate to see through his agenda and his programs. he's got a lot of know men ten and the complains only control the house. in order to maintain control, they have to play ball with obama otherwise they'll have real problems winning the midterm elections two years out. >> how should we be positions ourselves at the moment? you want to preserve funds, so who would you be positioning yourself? >> we'd use a modified bar bell strategy. putting about half of your money committed to equities in to high dividend yielding stocks.
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i know people are negative on those now, but i don't think that problem will have much of an impact. and about half of the money into higher beta names maybe in technology certainly which has sold off lately, certainly in centering if you can get more of the aggressive energy plays. that sha p that should pay off this year. dividend paying stocks will gut it out. so if you have a bar bell strategy, low growth, high dividend yielding stocks, high growth technology, energy, maybe someville type stocks, that should serve you pretty well. it should balance your risk and also participate in any market advance that may or may not happen. >> speaking of the middle east, the nymex crude futures have hit a two week high on escalating tensions in the middle east as you mentioned. netanyahu has vowed a significant expansion of
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israel's attacks interest speculation of an imminent ground offensive. as pressure swens guy, israel's foreign minister says he south 00 long term arrangement arguing any discussion must again with gaza agreeing to stop all fire into israel. how much do you think that significant or further sink gee owe mill unrest has already been factored in? >> i don't think it's factored into the market at all. we've been watching iran and israel kind of go at it for a while in term of the rhetoric and that seems to continue. you have a civil war in a ear i can't. the market doesn't pay a lot of attention to that. you have civil unrest in turkey and jordan which i find quite including. the market doesn't pay mention day to that or more of a
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fundamental government in charge in egypt. so whether this wakes the market up, kro i don't know. but it certainly should. >> i completely agree. i was doing research into the rest in jordan and it's a slightly different story there given the deficit that the government potentially is having to deal with now. but stay with us for now, michael and stay tuned. we head out to tel aviv for a live update at 5:45 a.m. eastern time. will jean claude younger and the euro group show solidarity with greece? we'll have animalysis in a coup moments. can i help you?
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u.s. markets expected to follow europe and asia higher at the open on hopes of a resolution on the fiscal cliff. barack obama praises myanmar's trip to democracy. and oil futures hit a two week
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high as international pressure mounts for a cease-fire in gaza. welcome back. just to keep you abreast with what's taking place at the moment in the uk, you have the uk prime minister david cameron speaking live at cbe conference. confederation of british industry. so he was just talking about how the government needs to be tough, radical and fast and he's continuing to lay out his thoughts there at this conference. we'll keep you up-to-date. tomorrow's euro group meeting is likely to be a tense affair. the imf looks to stick to its guns. christine lagarde told reuters that any financing program needs to be rooted in reality and not in wishful thinking.
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julia chatter sly is in athens. the chances of officials not green lighting further aid to greece, is it fair to say at the this stage that's very small? >> i think at the moment we have a situation where you have the imf really pushing for debt write down and on the other people wanting an enter rum solution. so they've never not reached a consensus, so somewhere in the middle is a likely response. they believe they will get 09 or 30 or 40 billion euros, but what ultimate difference will that make. yes, if you judge the situation here compared to what it was in the summer, sentiment has improved.
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but people are still joking what currency they buy their christmas presents in. i don't think they believe there will be an immediate return to the drachma, but gives you the idea of the uncertainty that remains. and what happens next when they get the cash? the government has to start implementing policies that it barely managed to agree to two weeks ago. a total of between 7% and 8% of gd. . and at the same time talk about a possible reshuffle of the cabinet, risk of a snap election early next year. so for businesses here, some deal needs to be reached and the big risk is a two year stop gap tomorrow and actually it's not enough for confidence to boost get here. louisa, back to you. >> julia, thank you very much. michael crofton is still with
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us. how closely are you watching the negotiations and does it make a difference how you view europe? >> makes a big difference because what we're seeing in europe is austerity which will lead to lower tax revenues which will lead to more austerity and it's a route to a major recession or worse. the problems in europe go back three decades. the government spending is a large portion of gdp in most european economies and by cutting off government spending, you're basically cutting gdp and that cuts tax receipts. so i don't see an end in sight. i think european union is theoretically a nice thing for the currency and so forth, but with 17 different country, multiple cultures, multiple financial systems, can't be put together overnight and if it will continue, it will take a very long time to work this out. so we're watching it very
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closely. europe and china are the u.s.'s two largest trading partners. and when are they're under stress, we're under stress. >> do you think we'll be watching the politics next year as closely as what we have this year or does focus shift back to the made being crow economic environment? >> i think 2013 is probably going to be an unbelievably incredible year for the markets. i think there will be tremendous volatility based on both political and economic considerations. although these macro concerns, four that i see, europe, china, the middle east and of course our fiscal cliff, any one of those could derail the markets worldwide. so politics in the macro and political are really together right now. you have to watch them both. >> michael, thank you very much for being with us. good to talk to you.
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still to come here, ireland's bailout turns two. how much progress has the nation made. we talk to the ceo of ida ireland in a couple of moments.
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welcome back. you're still watching "worldwide exchange." our european markets opened with a bounce and by the looks of things, us markets are implied higher, as with that. s&p by approximately 9, nasdaq by 13, and the dow jones up by around 70. european markets coming back from the 3 1/2 month low that we saw friday. we're higher somewhere around 11 1.5% for many of these markets. the u.s. bond investor, franklin templeton, taking a big bet on ireland. they've increased their holdings of irish bonds to 8.4 billion euros in the third quarter which is nearly a tenth of ireland's entire bond market. michael, co-director, said in a
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note to clients that ireland continues to make progress on fiscal reform and is increasingly getting recognition as a model for other countries. joining usceo of ida ireland. you're all of a sudden a model for other countries. a real vote of confidence. >> most certainly is. 8.4 billion is an awful lot of money, but it's falling over the last week even. we've seen bank of ireland return to the markets. it they got over a billion in covered bond four times oversubscribed. our own national treasury management agency raised funds and fitch gave us an upgrade fp so they're going in the right direction, but clearly there's a lot of work ahead. >> ireland, though, two years ago received money, asked for a bailout. and now two years later they're being held up as a model economy for other weaker southern european countries especially. is it too early to say they
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properly turned the corner? >> partly turned the economy because we have a flat domestic economy and a strong export led economy and that exboard led one is driven by foreign investment. and what we've seen are stronger areas like technology and financial services. so it's a bit of a mixed bag. >> where is the weakness? >> very much necessadomestic de. we have high unemployment. the construction economy has collapsed. the other side of that is construction prices and office rents are very low and state street went out to finance over 20 years, there were 20 bidders. so i think there's a lot of international confluence being shown. >> debt to gdp is still awfully higher, as well.
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>> it means further austerity members, so it's the balance between growth and exports. >> do you think the irish will be willing to take more austerity measures? >> so far they've shown remarkable resiliency and i think they're being conditioned now. but it is very tough at the individual level, at the collective level, but at the same time, i think people are committed to making sure we get out of the financial mess that we were in. >> what is the number one lesson or number one advice that you would give to some of the periphery countries that might be dealing with similar situation as ireland? >> what has helped us greatly is the fact that the direct investment we have in ireland and particularly the sectors we're active this because if you look at technology, life sciences, digital media, digital
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content, i think we deliver greatly. we have most of the world's leaders in those areas. the other countries don't actually have that and they drive our export performance. >> very good point. thank you very much. barry o'leary. just to give you a look at the under, october existing home sales out at 10:00 a.m., forecast to drop by 1.1% to an annual rate of 4.7 million homes. also november sentiment survey from the national association of home builders. on the earnings front, lowes reports results before the open. as does tyson foods. and then after the close, urban outfitters and jack in the box. still to come here, planes, trains and automobiles. how business travel budgets may be impacted if the u.s. economy plunges over the fiscal cliff.
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a new study from the global business travel association.
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welcome back, everybody. these are your headlines from around the world today. stocks bouncing in europe, equity markets beginning the
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week in the green rallying by more than 1% in some places on hopes of a resolution on the fiscal cliff. barack obama praises myanmar's shift to democracy in a first ever trip by a serving u.s. president to the country. but he cautions that his trip shouldn't be seen as an endorsement of the country's government. and oil furthers hitting a two week high as international pressure mounts for a cease-fire this gaza. ban ki-moon is heading to cairo for emergency negotiations. if you're just tuning in, thank you very much for joining us. always good to have your company. i have seen all of your tweets. thank you very much. you can still continue to reach us at la w@louisabojesen. just checking in on the markets ahead of the u.s. market open, we're seeing an indication that we are set to bounce across the
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board in the u.s. s&p indicated higher in the rineenlg often 8, nasdaq by 13, and dow by 70. so that's what we're looking at state size. regi region 4814 on the global 300. our main bourses higher by over half a percent. cac 40 up by 1.3%, along with the german market, ftse 100 higher by 1%. how, though, do you make money in these markets? this is what one of our earlier guests, what they have been telling us this morning. >> i'm recommending 130 the time
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to hedge. for the time being, a lot of that comes from the secretary that we expect heavy dollar strength. if you look at the option indicators, there's far more. >> czech republic is considered a safe haven. so still a reasonable return. >> i think you'll get some return from the core. germany's bund yields i think will be high because inflation will be so low. but, yes, the excitement appears on the periphery. you pick the right peripheral and you make a lot of money.
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stop u.s. lawmakers are expressing confidence that they can reach a bucket deal to avoid the fiscal cliff in january. president obama met with house and senate leaders on on friday and will sit them down again after thanksgiving. the potential $600 billion in tax hikes and government spending cuts could impact a reexcitement of the economy. a new report suggests that they would force companies to severely cut their business travel budgets to the tune of $20 billion over the next nine quarters. joining us now is mike mccormick, executive director of the global business travel association. mike, good to have you with us. just talk me through some of the points from this recent research. >> well, business travel is the leading indicator for the business at large for the economy at large. so going off the fiscal cliff will result in a severe and
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immediate impact, not only just to business travel, but to the overall economy. this is not a good thing obviously. and something that lawmakers need to work very hard to a vote. >> the up in number of business is set to drop in 2013, but we'd see a pick up in 2014. in other words, if they don't reach an agreement on the fiscal cliff, is it just a nine month bleep and then we recover? >> business travel is a leading indicator. so as companies want to grow top line again, they will invest this business travel at some point. but clearly avoiding the fiscal cliff will be a good thing because companies wouldn't have to go through a severe cut back first before starting that growth pattern again.
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business travel drives the economy. it's an investment that companies make. so again it's very critical to the outcome for our economy. >> what can the travel and tourism industry do heading into a potentially very uncertain year? >> well that's just it. corporate confident is very important for the economies and all companies at large. we need to know what the pain will be and think companies will look very favorably on some sort of compromise as we work through that in the coming months to set off on a budget year for 2013 in a more positive fashion. but again, if we do have those kinds of cut backs, you're talking about $20 billion worth of business travel cut. that will be something we will feel for quite some time.
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>> i know the research is focused on u.s. business travel. is this going to spill over on to european business travel, as well, and global business travel? >> it certainly will. and although china will, you know, continue to be on its rapid growth pattern and as will countries like india and brazil, europe will be impacted just like we were when european business travel was cut in this past year. we have a big high degree of enter dependency on each other's economies in this global environment that we're in. >> meek, thank you very much. thanks for getting up early to speak to us. i know it's very early still for you. mike mccormick, executive director of the global business travel association. i want to bring you up-to-date with flashes hitting the wires. up rest in israel and palestine, you're seeing the german foreign minister to travel to israel
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according to government spokesman to meet with palestine's abbas again according to a government spokesman. so more international leaders are traveling to the region to try to increase the peace talk negotiations. up next, we're live in tel aviv as international pressure mounts for a cease-fire in gaza. having you ship my gifts couldn't be easier. well, having a ton of locations doesn't hurt. and my daughter loves the santa. oh, ah sir. that is a customer. let's not tell mom. [ male announcer ] break from the holiday stress. fedex office.
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test-drive snapshot before you switch. visit progressive.com today. welcome back. these are your headlines today. u.s. markets expected to follow europe and asia higher at the open on hopes of a resolution on the fiscal cliff. barack obama praises myanmar's shift to democracy in a first ever trip by a serving u.s.rd to the country. and oil futures hits a two week high as international pressure mounts for a cease-fire in gaza. citigroup has agreed to pay knee man brothers to settle a dispute. the investment bank was forced to put up collateral before it
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collapsed back in 2008. citigroup and lehman's trustee has been fighting over which side was able to keep the money. the move follows a 5% reduction in the company's securities and banking unit last year or about 900 jobs. citigroup a little bit higher in german listing this morning. facebook and yahoo! groups are reportedly in talks about possible search for partnership. yahoo! ceo and facebook coo who both previously worked for google have met to discuss closer ties between the companies. reports say that any deal could push microsoft out of the picture. facebook and yahoo! well, you've got facebook trading higher by just over 1.5%, while yahoo! flat to a bit lower in frankfurt. cisco systems strikes a deal to
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buy meraki by the end of january. they make products mostly for mid-sized businesses that allow customers to control wireless networks, provide security and manage devices vie at internet. cisco trading also a bit higher in determine any today. ban ki-moon has call in order an immediate cease fire. he's travel to go cairo for emergency talks to try to agree to a solution. the german foreign minister will travel there, as well. and will meet with abbas. stephanie gosk is live in tel aviv. so it seems that more global leaders are traveling to the region, stephanie. the issue is whether or not it will make a difference at this
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point. >> reporter: that's right. talks are ongoing and on the one side, you have palestinians calling for an end to the block and i had that's been in place since 2006 and they want israel to stop targeting hamas leaders. in israel, officials want the rockets to stop targeting large cities. we've just yesterday experienced two sirens. rockets launched towards tel aviv. they were short down by the iron dome missile defense system. but so far the violence hasn't stopped. it's been going back and forth. the worst attack, a residential building, two stories that collapsed after it was hit, 12 killed, ten of those from the same family. >> i'm just thinking back to when hamas did legally win the general elections in 2006.
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they then seized control of gaza 2007 and kept the block and i had in place. do you think the israelis are doing everything they can to avoid now a ground invasion, or is there a notion that a ground invasion is inevitable that the stage? >> it depends. i don't think there is an inevitability. there are different camps as to whether they can achieve their goals. certainly there are those who believe a ground invasion is what they need. and then there are those that would like to see some sort of cease fire put in place, but they want guarantees that the rockets stop coming out of gaza. so they'll won't that kind of
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security put into place before they sign up to anything. >> stephanie, thank you very much. live from tel aviv. some u.s. investors, they may already be thinking about turkey, stuffing and cranberry sauce. thanksgiving takes place on thursday. we'll review the week ahead in a moment. we have big dreams. one is for a clean, domestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now.
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the 82-year-old company announced friday it was closing after failing to get wage and benefit cuts from thousands of striking bakery workers. now, this move means that most of its 18,000 employees will lose their jobs. several third parties have expressed interest in buying assets, so twinkies may find a second lease in life. someone else looking at snapping up assets a snoop dogg or snoop lion as i guess he's known now. he's setting his sights on scott land's celtics soccer team. the avid sports fan told the scott tesch daily record he first noticed the club after it defeated barcelona earlier this month. snoop doc doesn't envision himself running the team, but he would like to invest enough to have a seat on the board and
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have his voice heard to bring a bit of snoop to things. the final movie in the twilight series sank its teeth into the competition topping the u.s. weekend box office with an estimated $141.3 million. that makes it the eighth best opening all-time. but breaking dawn part 2 still came up just shy of the best debut for the franchise by new moon back in 2009. british troops in afghanistan got a surprise visit from 007 this weekend because daniel craig dropped in to give them a special viewing of the new james bond movie sky fall. that film came in second in the u.s. making $41.5 million. it is now the best performing bond film ever grossing $669 million worldwide. i'll still a sean connery fan. got to love sean connery. back to our headline
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stories, though. barack obama made an historic stopover in myanmar. obama met with the president and opposition leader. amid criticism from human rights activists, obama made it clear his trip was not aen doorsment of of the dictatorship but acknowledgement of of the democratic progress that's been made. >> i shared our belief that the process of reform is one that will move the country forward, the steps he's already taken for democratization elections, rewlees of prisoneolic lease off conscious, a commitment to work
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with us on human rights dialogue, all can unleashre of lease of prisoners of conscious, a commitment to work with us on human rights dialogue, all can unleashof lease of prisoners of conscious, a commitment to work with us on human rights dialogue, all can unleashf lease of prisoners of conscious, a commitment to work with us on human rights dialogue, all can unleash lease of prisoners of conscious, a commitment to work with us on human rights dialogue, all can unleashrelease of prisoners of conscious, a commitment to work with us on human rights dialogue, all can unleash the potential of this beautiful country. and i recognize this is just the first steps on what will be a long journey. >> meanwhile president obama continues to press his case for avoiding the fiscal cliff in january. the white house says he spoke with several more ceos this weekend including jamie dimon, warren buffett, tim cook. the president met with top u.s. lawmakers to begin budget talks on friday and is expected to sit down with them again after the thanksgiving holiday. both sides are confident they can reach a deficit cutting deadea deal. >> every member of our caucus appreciates this challenge is ever closer. and that's why we need to negotiate through this process and make certain that we come up with a solution, a real
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solution, that will actually solve the problem. >> and what i hear is a perceptible change in rhetoric from the other side. and what it is is an invitation for our side to basically sit down and say what can we do for this country. >> senator durbin says the republicans appear more willing to try it reach a deal this time around compared to previous budget talks. let's give you a look at what's on on the agenda in the united states. talk a little bit more about this, as well. but the october existing home sales are out at 10:00 a.m. eastern. forecast to drop by 1.1% to an annual rate of 4.7 million homes. also at 10:00, we get the november sentiment survey from the national association of home builders. on the earnings front, lowes reports results before the open as does tyson and after the close, urban outfitters and jack in the box. european equity markets opening slightly higher hanging on to the gains across the board.
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dow higher around 70, nasdaq indicated up by 13, and s&p by 8. this is stacking up to be the ninth worth november for the dow and s&p since 1973. ja jack, when i hear things we're stacking up for a bad november, i think santa claus rally. am i the only one? >> i think you're right. much of the selling that's taken place as taken place in the very
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repositioning selling. people maybe getting in and rotating into some of the stocks that are more defensive. the market has gone down it a very nice multiple and there is nice value to be found here. you end up with a very i guess suppressed market condition which is the fundamental what you need for a nice surprise rally. the other thing to keep in mind is that the week before a holiday, this is the thanksgiving holiday, a shortened week here in the states, historically very strong week, which is followed if you think about it by that whole santa claus rally december month that comes into play. but two other things to keep in mind. remember, go have all of our focus right now on gaza. things can change very quickly there. and the other thing is remember, we are just one handshake away from seeing this market reprice
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in 5% right away because that will be the fiscal cliff deal that everybody's been waiting for. >> so do you position yourself for more uncertainty or do you think markets will be repelling what's taking place on a global scope and also on a fiscal cliff scope at least until the beginning of next year? >> i think the repositioning protective and defensive type of positions were before the election. now is the time that you actually start looking for bargains. you see what the answerler effe ancillary effect did to the market. you look for wonderful far begins. it's a strong buy signal. it's all a question of how long it takes before the market catches up to what the earnings are telling us. >> we're just seeing a flash on the wires, as well, according to
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afp that hamas and its rival agreeing to unite over the gaza crisis, as well. it could become a lot more uglier than what it is now. are you positioning yourself expecting this, do you go in and think oil is going to head a lot higher? >> i do think oil will go higher. i think we ended up seeing this crisis hit right at the lower end of the trading range. so watching wti get back into the mid-90s would not be a surprise. i think the real question is what happens to gold. if we see gold start to spike say up through $1800, that means that people are really worried about this crisis escalating. something we'll have to watch. >> jack, good to speak to you. thank you very much. that's it for today's show. thanks for watching "worldwide exchange." [ female announcer ] with the e-trade 360 investing dashboard.
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bouroudjian. bouroudjia violence escalating in the middle east. israel continuing air strikes in gaza as rocket attacks target tel aviv. the looming fiscal cliff continuing. the white house says u.s. leaders are in their words not near the finish line on these talks. the president stepping up his lobbying effort reaching out to top corporate chieftons including jamie dimon and warren buffett. it is monday, november 19th, 2012, "squawk box" begins right now. good morning, everyone. welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. israel continuing to hit targets across